$ERII

Energy Recovery, Inc.

CIK:0001421517|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 11,996	$ 28,051	$ 21,702	$ 36,116
Cost of revenue	3,039	10,097	8,411	13,704
Restructuring - inventory reserve	0	0	1,632	0
Gross profit	8,957	17,954	11,659	22,412
Operating expenses:
General and administrative	6,801	7,669	13,256	16,243
Sales and marketing	4,336	5,360	9,455	10,266
Research and development	2,849	3,451	5,638	6,452
Restructuring charges	855	0	2,391	539
Impairment of goodwill	0	0	1,662	0
Total operating expenses	14,841	16,480	32,402	33,500
Income (loss) from operations	(5,884)	1,474	(20,743)	(11,088)
Other income (expense):
Interest income	680	940	1,405	2,013
Other non-operating income (expense), net	122	(26)	230	(20)
Total other income, net	802	914	1,635	1,993
Income (loss) before income taxes	(5,082)	2,388	(19,108)	(9,095)
Provision for (benefit from) income taxes	(1,884)	334	(3,659)	(1,269)
Net income (loss)	$ (3,198)	$ 2,054	$ (15,449)	$ (7,826)
Net income (loss) per share:
Basic (in dollars per share)	$ (0.06)	$ 0.04	$ (0.30)	$ (0.14)
Diluted (in dollars per share)	$ (0.06)	$ 0.04	$ (0.30)	$ (0.14)
Number of shares used in per share calculations:
Basic (in shares)	51,463	54,257	52,058	54,578
Diluted (in shares)	51,463	54,486	52,058	54,578

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (15,449)	$ (7,826)
Adjustments to reconcile net loss to cash provided by operating activities
Stock-based compensation	3,349	3,899
Depreciation and amortization	1,979	1,906
Accretion (amortization) of discounts (premiums) on investments	(207)	(350)
Deferred income taxes	(3,798)	(1,337)
Impairment of long-lived assets	0	353
Impairment of goodwill	1,662	0
Restructuring - inventory reserve	1,632	0
Other non-cash adjustments	362	235
Changes in operating assets and liabilities:
Accounts receivable, net	62,402	31,479
Contract assets	1,647	(185)
Inventories, net	(16,138)	(8,027)
Prepaid and other assets	(538)	(707)
Accounts payable	2,631	272
Income taxes	(2,391)	(905)
Accrued expenses and other liabilities	125	(5,145)
Contract liabilities	75	1,162
Net cash provided by operating activities	37,343	14,824
Cash flows from investing activities:
Maturities of marketable securities	21,850	51,125
Purchases of marketable securities	(23,153)	(17,243)
Capital expenditures	(1,689)	(326)
Proceeds from sales of fixed assets	13	10
Net cash (used in) provided by investing activities	(2,979)	33,566
Cash flows from financing activities:
Net proceeds from issuance of common stock	132	1,459
Tax payment for employee shares withheld	(682)	(476)
Repurchase of common stock	(20,679)	(21,577)
Refund (payment) of excise tax associated with repurchase of common stock	247	(432)
Net cash used in financing activities	(20,982)	(21,026)
Effect of exchange rate differences on cash and cash equivalents	(20)	60
Net change in cash, cash equivalents and restricted cash	13,362	27,424
Cash, cash equivalents and restricted cash, beginning of year	48,076	29,757
Cash, cash equivalents and restricted cash, end of period	$ 61,438	$ 57,181

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 61,438	$ 48,076
Short-term investments	31,618	27,173
Accounts receivable, net	14,237	76,639
Inventories, net	38,242	24,260
Prepaid expenses and other assets	3,888	5,063
Total current assets	149,423	181,211
Long-term investments	5,018	8,034
Deferred tax assets, net	12,065	8,267
Property and equipment, net	12,619	12,934
Operating lease, right of use asset	6,679	7,701
Goodwill	11,128	12,790
Other assets, non-current	804	577
Total assets	197,736	231,514
Current liabilities:
Accounts payable	5,001	2,114
Accrued expenses and other liabilities	9,790	11,670
Lease liabilities	2,653	2,531
Contract liabilities	1,114	1,039
Total current liabilities	18,558	17,354
Lease liabilities, non-current	5,580	6,898
Other liabilities, non-current	1,120	1,070
Total liabilities	25,258	25,322
Commitments and contingencies (Note 7)
Stockholders’ equity:
Common stock	67	67
Additional paid-in capital	247,317	244,397
Accumulated other comprehensive loss	(435)	(94)
Treasury stock	(187,690)	(166,846)
Retained earnings	113,219	128,668
Total stockholders’ equity	172,478	206,192
Total liabilities and stockholders’ equity	$ 197,736	$ 231,514